Amid soaring global fuel prices and Dubai crude oil topping $100 per barrel, the Philippine Senate is taking steps to provide relief for Filipino households.
The committees on Energy and Ways and Means have approved, in principle, several measures that would allow the President to suspend or reduce excise taxes on petroleum products during economic emergencies. Central to this effort is Senate Bill 1923, which seeks to amend the national tax code to grant the executive branch immediate authority when global market volatility threatens domestic commodity prices.
Senate Bill 1923, formally titled “An Act Granting the President of the Philippines Power to Suspend the Excise Tax on Petroleum Products During National or Global Economic Emergencies,” proposes amendments to Section 148 of the National Internal Revenue Code of 1997.
The measure, filed by Senator Bam Aquino, aims to shield Filipino households from the impact of rapidly rising fuel costs. Aquino clarified that automatic suspension triggers under the 2017 TRAIN Law have already expired.
“Way back in 2017, meron kaming provision na na-introduce na pwede magkaroon ng automatic suspension on the excise tax kapag umabot ng $80 per barrel ang krudo. But this is already done. That was only operational for three years. Nangyari na ito,” he said.
Aquino said that it is timely to have a proposal that would allow the President to suspend the excise tax on fuel, noting that when fuel prices rise, the cost of goods also increases.
He added that granting the President this authority in advance could help prevent a surge in the prices of basic commodities.
He warned that waiting for the crisis to peak before taking action could worsen the impact on consumers.
“We’re expecting this to go higher…yung paggawa ng batas, hindi yan instant. Kahit ma-certify pa yan na urgent, baka umabot pa rin yan ng isang buwan. So, we want to be ready for the increases that we’re expecting,” Aquino added.
Economic managers have raised concerns over the potential loss of revenue, estimating it could reach more than P130 billion if excise taxes are suspended.
Aquino, however, argued that the larger drain on national wealth comes from systemic corruption, which he says dwarfs the potential revenue loss from tax relief.
“Ito’ng argument about collections and kulang yung koleksyon, kulang yung makukuha ng revenue, ang kaakibat kasi niyan ay yung tamang paggamit ng pondo ng bayan. We’re still in the middle of a scandal where trillions of pesos were lost to corruption,” he said.
“‘Yan ang unahin natin. Unahin natin ‘yun to close the gaps and close the leaks pagdating sa corruption, mas malaki ‘yan ‘di hamak kesa sa posibleng mawawala na buwis dito sa krudo at dito sa gasolina at diesel,” Aquino added.
The senator emphasized that high fuel prices affect more than transportation costs; they also drive up the price of food and other basic goods.
Aquino is advocating a two-pronged approach: suspending the excise tax to curb fuel prices and reactivating direct subsidies for public transport workers and delivery personnel whose take-home pay is directly affected.
“Habang yung mga workers na directly affected, yung diretso sa take home pay nila yung mawawala, ‘yun naman, directly natin tulungan at mabigyan natin ng tulong,” he said.
The Senate has expressed general support for the intent of the bill and has begun deliberations to consolidate legislative proposals while awaiting the House of Representatives to transmit its version.
Once received, the Senate aims to sponsor the measure on the plenary floor as early as Monday next week.
President Ferdinand Marcos Jr. has indicated that he is waiting for the final committee report from both houses before declaring the measure urgent, viewing it as a precautionary tool to protect the Philippine economy from further disruptions.
